Value and cost certainty still count for a great deal in the overall balance of most clients’ priorities and as a result, some form of competitive tendering will continue to be used on a large number of projects. Indeed, there is evidence to demonstrate that, where lump-sum contracts are in use, this approach can still deliver good-value solutions if the process is not abused. Although many commentators now recommend the adoption of negotiation and partnering-based arrangements, many clients continue to seek the reassurance of some element of competition in their tendering processes. Historically, clients have mostly chosen contractors on the basis of lowest cost. This seemingly innocuous objective has become increasingly more difficult to achieve as programmes have accelerated and as both employers and contractors seek, in particular, to strengthen their position with regard to the apportionment of risk.
The objective of contract procurement is broadly to identify an appropriately skilled contractor and to secure an appointment on the basis of the right team, agreed costs, programme and appropriate transfer of risk. Building Boardroom Digital Construction Academy.Construction Business: Strategy, Risk and Regulations.
